EV discounts drove up market share in August

Electric vehicle (EV) registrations grew in August and achieved a market share figure of 22.6%, the highest since December 2022.

Overall new car registrations were 1.3% down, last month, according to data from the Society of Motor Manufacturers and traders (SMMT).

Continuing the recent trend, fleet purchases drove the market, accounting for six in 10 cars registered last month, or 51,329 units.

The SMMT attributes the growth in EV sales to the recent heavy discounting by manufacturers and dealers.

In what is traditionally one of the quietest months of the year for new car sales, 84,575 units were registered, just 1,082 fewer than in the same month last year.

Petrol and diesel uptake fell by 10.1% and 7.3% respectively, but together these fuel types still represented more than half (56.8%) of all new car uptake in August. 

Plug-in hybrid (PHEV) registrations declined by 12.3%, with a 6.8% share, but hybrid electric vehicle (HEV) uptake increased, by 36.1%, to take 13.8% of the market.

Year to date, EV market share has edged up to 17.2% and is expected to rise further to 18.5% by the end of the year thanks to increasing model choice – with some 364,000 BEVs registrations forecast for the year.

Ahead of the Autumn Budget due on 30 October, the industry is calling for urgent action to bolster the market for new EVs, including binding targets on public chargepoint provision commensurate with those placed on industry, the reintroduction of incentives for private buyers and removal of disincentives, including the Vehicle Excise Duty expensive car supplement, set to be introduced in 2025.

Mike Hawes, SMMT chief executive, said, “August’s EV growth is welcome, but it’s always a very low volume month and so subject to distortions ahead of September’s number plate change. The introduction of the new 74 plate, together with a raft of compelling offers and discounts from manufacturers, plus growing model choice, will help increase purchase consideration and be a true barometer for market demand.

"Encouraging a mass market shift to EVs remains a challenge, however, and urgent action must be taken to help buyers overcome affordability issues and concerns about chargepoint provision.”

The Ford Puma remains the UK's best-selling car this year, followed by the Kia Sportage.

Nick Williams, managing director at Lex Autolease, said: “The continued rise in sales will be welcomed by manufacturers looking for a more stable economic and policy backdrop to provide the foundation for continued growth going into the final quarter of 2024. 

"However, there is still much to do with consumer sentiment and confidence to dispel the misperceptions around battery life and understand better the benefits of cheaper running costs.  It will take cross-industry collaboration; manufacturers providing consumers with compelling and affordable new models, dealers offering insight and knowledge to promote the benefits of both new and used EVs and funders to offer a full range of finance solutions.

"We encourage government to look for further opportunities to support the transition in owning EVs and public charging infrastructure as we navigate our way through the challenges on the transition set by ZEV mandate.”